NO DECISION MADE TO RAISE ALLOWANCE FOR PM, CABINET

Prime Minister Brian Mulroney

His 39 Cabinet ministers have not yet decided whether to increase the special salary allowances they get for their extra duties or continue the freeze they imposed in 1985.

But even if they opt for the freeze, their monthly pay cheques will still rise in 1987 because the basic pay package all members of Parliament and senators receive continues to increase in home equipment.

Mr. Mulroney will earn $132,755 next year compared with $131,055 this year and Cabinet ministers will collect $112,930, up from $111,330 this year, if their special allowances remain the same.

The average backbench MP will receive $75,400 in 1987 compared with $73,800 this year - after the $1,000 pay cut announced by Finance Minister Michael Wilson in his last budget.

Mr. Wilson

Said the 282 MPs and 104 senators would have $1,000 carved from each of their 1986 salaries as part of the Government's plan to reduce the federal deficit.

But since the legislation was not passed until Dec. 19 - the day MPs and senators went home for Christmas - the cut will come out of their 1987 pay.

MPs will likely see the first three of their monthly pay cheques reduced by $333.33 each to pay off the $1,000. The cut officially counts on their 1986 salaries but effectively reduces salary increases from now on.

All MPs, including Mr. Mulroney and Cabinet ministers, earn basic salaries of $56,300 plus tax-free expense allowances based on their riding locations.

MPs from the Northwest Territories 

Will have expense allowances of $25,200 next year. The figure for those in 23 remote ridings, including Mr. Mulroney's sprawling Quebec riding of Manicouagan, will be $23,500.

MPs in all the other ridings will receive $19,100 for their expense allowances, although the costs of running their offices, travel to and from their ridings and other perks of the job are paid out of general House of Commons expenses.

This means ordinary MPs from regular ridings who do not hold party positions will earn basic pay packages of $75,400 next year, up from $73,800 this year.

MPs holding party positions earn special salary allowances on top of the basic pay package.

Mr. Mulroney will earn $52,955 next year for his extra duties as Prime Minister, and Cabinet ministers an extra $37,530 if they decide to extend the 2-year-old freeze for another year.

In 1985, Mr. Mulroney decided to reduce his allowance by 15 per cent and Cabinet ministers' allowances by 10 per cent. Cabinet voted to keep the freeze this year but has not yet made the decision on 1987 salaries.

If they decide to pay themselves what they are legally entitled to, Mr. Mulroney could collect $145,200 next year and Cabinet ministers could receive $119,100.

By freezing their salaries for two years, the Government has saved taxpayers $20,390 on Mr. Mulroney's pay and $377,600 on Cabinet ministers.

The annual Jan. 1 increase 

Which is roughly calculated as one percentage point below inflation - is outlined in complicated legislation and has not yet been formally set by the Government since it is awaiting final inflation figures for this year.

However, a Commons employee involved in calculating the pay raises said the increase will almost certainly be 2.25 per cent. Figures given are based on this rate.

Senators will earn $65,500 next year, up from $64,100 (including the $1,000 pay cut) this year. They earn the same basic salary as MPs but their expense allowance is smaller - $9,200 for every senator.

Liberal Leader John Turner and Commons Speaker John Fraser will each earn $119,100 next year, up from $116,600 this year, plus other perks including $2,000 a year for car allowance.

The Prime Minister and Cabinet ministers also get car allowances. The Speaker and the deputy Speaker, Marcel Danis, are given yearly rent allowances. Click homeequipment9.wordpress.com for more information.

New Democratic Party Leader Edward Broadbent was supposed to pass the six-figure mark this year but he slipped to $99,600 with the $1,000 pay cut. But he will definitely make it into the upper range in 1987 with his $101,700 salary.